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Ecuador
Corporate - Branch income
Last reviewed - 25 January 2021Distributed or retained branch profits are taxed at a rate between 22% and 28% (see the Taxes on corporate income section). Further taxes are payable when profits are remitted to headquarters abroad. Re-invested profits are levied at a 12% or 18% CIT rate. Companies must increase their share capital within the following fiscal year to be beneficiaries of the CIT rate reduction.
Countries and territories considered as tax havens by tax authorities
Besides the tax haven list published by the tax authorities shown below, ‘low-tax jurisdictions’ shall be subject to the same tax treatment. ‘Low-tax jurisdictions’ are defined as a territory where the effective rate of income tax or taxes of an identical or similar nature is less than 60% of the applicable rate in Ecuador. Additional considerations are also taken by the tax authorities for determination of low-tax jurisdictions/preferential tax regimes.
| Albania | Cook Islands | Maldives | Saint Vincent and the Grenadines |
| American Samoa | Curaçao | Malta | San Marino |
| Andorra | Cyprus | Marshall Islands | Santa Elena |
| Angola | Djibouti | Mauritius | Serbia |
| Anguilla | Dominica, Commonwealth of | Monaco | Seychelles |
| Antigua and Barbuda | French Polynesia | Montenegro | Solomon Islands |
| Aruba | Gibraltar | Montserrat (UK) | Sri Lanka |
| Ascension Island | Granada | Myanmar | Svalbard Islands |
| Azores Islands | Greenland | Nauru | Swaziland |
| Bahamas | Guam | Nigeria | Tokelau |
| Bahrain | Guyana | Niue | Tonga |
| Barbados | Hong Kong | Norfolk Islands | Trieste (Italy) |
| Belize | Isle of Man | Oman | Trinidad and Tobago |
| Bermuda | Jordan | Ostrava | Tristan Da Cunha |
| Bonaire, Saba, and St. Eustatius | Kiribati | Palau | Tunisia |
| Brunei Darussalam | Kuwait | Panama | Turks and Caicos Islands |
| Bulgaria | Labuan | Pitcairn | Tuvalu |
| Cabo Verde | Liberia | Puerto Rico | United Arab Emirates |
| Campione D´italia | Liechtenstein | Qeshm Islands | Vanuatu |
| Cayman Islands | Luxembourg | Saint Kitts and Nevis Islands | Virgin Islands (British) |
| Channel Islands (Guernsey, Jersey, Alderney, Greater Sark, Herm, Little Sark, Brechou, Jethou, Lihou) | Macao | Saint Lucia | Virgin Islands of the United States |
| Christmas Islands | Macedonia | Saint Martin | Western Samoa |
| Cocos (Keeling) Islands | Madeira (Portugal) | Saint Pierre and Miquelon | Yemen |
Certain tax regimes from Costa Rica, Estonia, Ireland, Montenegro, the Netherlands, New Zealand, Serbia, the United Kingdom, and the United States may be considered preferential tax regimes.
